Deduction management
Menu path
Click Advanced in the Process screen. For more information, see Processing matched invoices.
Note: The Advanced button is displayed in the Process screen only when the Deduction management check box is selected in Bank settings. For more information, see Bank settings.
Introduction
The Deduction management screen is used to manage "unauthorized deductions" that require the generation of a new invoice (customer debit memos or "charge back" or "invoice back") that is sent back to the customer. For example, suppose you have 3 invoices, where each invoice is valued at Euro 100, 200, and 300 respectively. The customer will then have to pay the total amount of Euro 600 for all the invoices. However, discounts and deductions come into the picture for these transactions. Discounts, agreed with the customer, are considered authorized deductions, whereas unauthorized deductions have to be recreated manually and invoiced to the customer again. Unauthorized deductions allows for the recording of unauthorized deductions against cash receipts with the option to invoice back to the customer. Besides being able to invoice back the customer, it is also possible to write off the receipt balances in the same screen at the same time.
What version are you using?
The information in this document is applicable to product update 411 and higher. If you have versions lower than this, certain features explained here will not be applicable.
How do I perform deductions?
- In the debtor or creditor card, select an entry.
- Click Match.
- In the Matching screen, select the relevant payment(s) or receipt(s) on the left side of the screen and invoice(s) on the right.
- Click Match/Process. The Process screen will be displayed only if there is a balance amount resulting from the paired transactions.
- In the Process screen, click Advanced. The Deduction management screen will be displayed. The upper part of the screen (also known as the Allocation section) shows information about invoices selected in the Matching screen. The Invoice back/Write off section at the lower part of the screen enables you to manage discounts or deductions.
- Define the required columns in both sections.
- Click Process.
Columns
· Upper (or Allocation) section
Date
This column displays the date of the invoice.
Our ref.
This column displays the reference value (for Our reference) of the invoice.
Cur.
This column displays the currency of the invoice.
Amount
This column displays the amount in the currency of the invoice. This amount can be in a foreign currency or in the default currency.
Allocation
By default, this column displays the cash flow amount. You can enter the amount paid, discount inclusive. The remainder of the amount, which is the difference between the invoiced amount and the allocated amount, will be shown as the balance.
Balance
This column displays the balance amount that will remain as an outstanding item. There will only be a balance amount if the allocated amount is different from the invoiced amount.
Surcharge
This column displays the surcharge amount.
Discount
This column displays the discount amount.
Earned discount
The system will fill the discount amount based on the discount term related to the invoice. The discount amount in the Discount column depends on the payment discount used for the invoice. Whereas, the value in the Earned discount column depends on the due date of the invoice. If the payment is on or past the due date, the earned discount will be filled with 0.00 EUR. If the payment is before the due date, the value in this column will be the amount of the discount. If the value in the Earned discount column is “EUR 0.00”, the system will write off the discount as discount. This is the default option that is used and this cannot be changed.
Type
This column displays the type of transaction, for example, sales invoice or sales credit note.
G/L
This column displays the debtor or creditor general ledger account used in the invoice entry.
Your ref.
This column displays the reference value (for Your reference) of the invoice.
Amount (EUR)
This column displays the amount in the default currency of the invoice.
Allocation (EUR)
This column displays the allocated amount in the default currency.
Xrate
This column displays the exchange rate used in the invoice.
Description
This column displays the description entered for the invoice by the user when entering the invoice.
Invoice amount
This column displays the original invoice amount of the invoice.
Due date (Discount)
This column displays the due date of the invoice. This date is used to determine if the value of Earned discount should be EUR 0.00 or the amount of the discount.
· Invoice back/Write off section
Type
Select how the discounts or deductions should be booked. The options that are shown here depend on your selected records, same as during standard matching. You can choose from:
For balance overpaid -
- Balance
- Payment difference
- Prepayment
- Exchange rate difference (This option is applicable for foreign currency transactions)
- Refund
- Invoice back
- Bank charges
- Other
For balance to be paid and balance to claim -
- Balance
- Payment difference
- Discount (Including: Tax): Adjust revenue
- Discount (Including: Tax): Write off discount
- Exchange rate difference (This option is applicable for foreign currency transactions)
- Invoice back
- Bank charges
- Other
Note: All other information will be filled in automatically for the rest of the columns. You can also edit or add information in the columns. The Allocation amount will depend on your selection at Type. Allocation of Discount (Including: Tax) is always done in the default currency even though the invoice may be in a foreign currency.
Date
This column displays the date of the entry that will be created during matching. By default, this is the system date, but this can be changed by the user.
Reporting date
This column displays the reporting date of the entry that will be created during matching. By default, this is the system date, but this can be changed by the user.
Our ref.
This column displays the highest value (for Our reference) of the selected invoices in the upper part of the screen. In order to maintain traceability of the discount entry to the original invoice, you have to manually enter the correct Our reference value.
Debit: G/L
This column displays the general ledger account that will be used on the debit side of the entry. This general ledger account can be changed if necessary.
Project code
This column displays the project code that will be used on the debit side of the entry.
Cost center
This column displays the cost center that will be used on the debit side of the entry.
Cost unit
This column displays the cost unit that will be used on the debit side of the entry.
Credit: G/L
This column displays the general ledger account that will be used on the credit side of the entry. This general ledger account cannot be changed.
Project code
This column displays the project code that will be used on the credit side of the entry.
Cost center
This column displays the cost center that will be used on the credit side of the entry.
Cost unit
This column displays the cost unit that will be used on the credit side of the entry.
Cur.
This column displays the currency of the entry that will be created. The currency cannot be changed by the user.
Allocation
This column displays the discount amount that needs to be booked by the system.
Allocation (EUR)
This column displays the discount amount, in the default currency, that needs to be booked by the system.
Description
This column displays the description of the discount entry. The default description depends on the write off type and can be changed if needed.
VAT
This column displays the VAT code of the discount entry.
Jrnl
This column displays the number of the general journal in which the discount entry will be made.
Xrate
This column displays the exchange rate of the discount entry.
Your ref.
This column displays the reference value (for Your reference) of the invoice.
PC
This column displays the payment condition that will be used in the discount entry.
At the bottom of the Deduction management screen, the system summarizes the totals on allocation of amounts as follows:
· Allocation section
Invoice
This line displays the total amount of the invoices excluding the discount.
Credit surcharge
This line displays the total amount of credit surcharge.
Discount
This line displays the total of the discount amount.
Earned discount
This line displays the total of earned discount amount.
Invoice back
This line displays the total amount of invoice back amounts.
Write off
This line displays the total amount of written off discounts.
· Matching transactions section
This section is applicable only for foreign currency transactions.
Bank/Cash
This line displays the information on the currency, exchange rate, and amounts of the paired cash flow entries.
Invoices
This line displays the information on the currency, exchange rate, and amounts of the paired invoices.
· Differences section
Differences
This line displays the difference between total invoice amount minus the payment and the total amount of the discounts. This amount has to be “0.00” before you can process the discounts.
Buttons
Process
Click this to process the deduction management and return to the Matching screen.
Cancel
Click this to cancel the process and exit.
Related documents
| Main Category: |
Support Product Know How |
Document Type: |
Support - On-line help |
| Category: |
On-line help files |
Security level: |
All - 0 |
| Sub category: |
Details |
Document ID: |
17.853.998 |
| Assortment: |
Exact Globe+
|
Date: |
26-09-2022 |
| Release: |
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Attachment: |
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| Disclaimer |